- The gender pay gap and longer life expectancies compared to men make it difficult for many women to save enough for retirement, experts said Tuesday at CNBC’s Women and Wealth event. said.
- However, there are several methods women can try to increase their savings.
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Women face tough economic prospects after retirement.
According to the U.S. Census Bureau, approximately 50% of women ages 55 to 66 have no personal retirement savings, a higher percentage than men (47%). data. Those with retirement savings are less likely to have more than $100,000 (22% vs. 30%).
“The picture is pretty bleak for women” who don’t have enough savings for retirement, Cindy Hounsell, founder and president of the Women’s Association for a Safe Retirement, told CNBC on Tuesday. women and wealth event.
The typical woman earns less than a man, about 82 cents on the dollar. according to To Pew Research Center. The gender wage gap, which has barely improved over the past 20 years, makes it difficult to save for the future.
Women, on the other hand, need to further expand their savings. Women who retire at age 65 are more likely to live another 21 years, nearly three years longer than men. according to Submit to the Employee Benefits Administration.
Marianela Corrado, a certified financial planner and CEO of Tobias Financial Advisors, based in Plantation, Fla., says that when women don’t have enough money to save for retirement, they lose track of the lifestyles they were accustomed to during their working years. He said that it may be necessary to cut back.
Speaking at the Women and Wealth event, she said if you have children who can provide financial support, it can be a burden on them.
Compounding the problem: Spousal caregiving in particular has “more detrimental economic consequences” for women. according to to the National Institute for Retirement Security. It turns out the same is true about divorce.
However, there are ways women can try to strengthen their eggs.
Broadly speaking, cash flow can be improved by increasing the amount of money coming in (i.e., income) and reducing the amount of money going out (i.e., expenses), Corrado said.
For example, if a woman thinks she’s underpaid, Corrado said she can talk to her boss at work, ask about growth opportunities and find a path to higher earning potential. Show your manager where you’re adding value and strive to earn fair compensation, she added.
Strengthening pay transparency laws that require employers to disclose salary ranges in job postings could make this easier in some states.
In addition, women can audit their personal spending annually and cut out budget items that don’t add long-term value, Corrado said. She should scrutinize “autopilot” spending, such as automatic tolls, he said.
Corrado said women should also look into their workplace benefits to determine which ones apply to them.
For example, don’t leave discretionary money on the table by not fully matching into your company’s 401(k), she said. A self-employed person can also set up her own 401(k) plan. People who don’t have access to a workplace retirement plan can save in a personal retirement account or other types of savings accounts, she said.